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exit steam. make sure its not running in the background.
rename clientregistry.blob to clientregistryold.blob, and run steam.
clientregistry.blob is in steam dir
 
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nope, didn't work, steam wasn't running I made sure in fact I restarted. Steam isn't allowed to start on start-up
I renamed the file started steam and it just made another clientregistry.blob

Not sure if being on 64-bit matters but I am.

Update: Ok, well it looks like steam is back in business I tried it again after a couple hours minding my own business and it just started working again, It installed some updates and I had to sign in again but its working!

Thanks +rep
 
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